REAL ESTATE TAXES – New Hampshire Practice

Real Estate Taxes Estimated Tax Bills

The pre-printed Exception No. 5 in Schedule B of the policy covering municipal taxes and other charges has a blank space for the date through which said taxes and charges have been paid. To determine this date, you must rely on the tax collector in each town for an accurate report of the taxes owed on a particular parcel of land. Usually, in a telephone conversation with the tax collector, you will seek to determine the amount of taxes owed, whether they have been paid in full or in part, and if overdue, the interest payable. It is recommended to require the seller to furnish evidence of payment of the taxes such as a receipted tax bill and cancelled check, at the closing.

The tax year begins on April 1 of the year of the tax and ends on March 31 of the following year.

ANNUAL TAX

In towns where the taxes are paid annually, they are usually due December 1 of the tax year. If your closing is taking place before December 1, the paid through date on Exception 5 will be March 31 of that year. If the closing is taking place after December 1 and you have evidence that the taxes were paid in full, the paid through date will be March 31 of the following year.

SEMI-ANNUAL TAX

Some towns have adopted a procedure by which taxes are paid semi-annually. A bill is sent on July 1 covering the period from April 1 through September 30, and a second bill is sent on December 1 covering the period from October 1 through March 31 of the following year. If the taxes for the first period are paid, then the paid-through date is September 30 of that year. If your taxes for the second period are paid, then the paid-through date is March 31 of the following year.